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HomeMy WebLinkAboutHousing Cmsn - 03/11/09PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR DATE: APRIL 9 2009 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held April 8, 2009: ➢ MARCH 11, 2009 Faia BY HOUSG AUTH Please submit to the Housing Authority Board. ON .2 . C9 VERIFIED BY: RDI /1?)ciL Thank you. cc: John Wohlmuth, Executive Director ('riclinal on file 1,,/ith C tE. CITY OF PALM DESERT HOUSING COMMISSION MINUTES MARCH 11, 2009 I. CALL TO ORDER Verna Smith, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Leo Sullivan Verna Smith Wade Tucker Jane Turner Also Present: Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RDA/Housing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Donnie Garibaldi, RPM Company Marilyn Mack, RPM Company Spencer Knight, Landscape Manager Veronica Tapia, Redevelopment Account II Members Absent: III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of February 11, 2009. Housing Commission Minutes March 11, 2009 With a Motion made by Commissioner Turner and seconded by Commissioner Lewis the minutes of February 11, 2009 were unanimously approved. V. REPORTS AND REMARKS A. COMMISSION REPORTS Verna Smith informed the Commission that Natalie Russo and her had met with Janet Moore to discuss ideas to better serve the Housing Commission. One idea discussed was the possibility of canceling meetings that do not have action items and possibly visit a property in a project phase; both Natalie Russo and Verna Smith felt it would be beneficial to new members. Also suggested by both commissioners is the ability to allow Commissioners to have a platform during the course of the meetings to voice their opinions and be inquisitive about anything without interrupting the meeting; Mrs. Smith felt it was a little stiff in the past. She also stated that she would like more input from Mr. Richard Kelly from the standpoint of the City Council. She further noted that she would like to see the Commission interact more and expressed that the Commission is here to be supportive of staff. Wade Tucker asked about the process of canceling a meeting. Janet Moore stated that in the event a meeting could be canceled the Chairman would be contacted and then the meeting may be canceled. Canceled and adjourned meetings are posted on the City's public bulletin boards. Mrs. Smith asked the Commission on their thoughts with regard to canceling meetings with no action items. Jane Turner stated that she always felt it was not a good use of her time to come in when there were no action items to discuss at a meeting. She expressed that she was in favor of canceling a meeting that did not require action from the Commission. Donna Lewis agreed and asked that the monthly informational reports be mailed in the event a meeting is canceled. Leo Sullivan commented that this topic has been discussed in the past, given that he has the most tenure as a member of this Commission. He noted that a meeting went dark one year and an item had to be rushed the following month. He expressed that he personally did not like to see a meeting go dark for that reason. He also stated that staff has brought last minute items to the agenda for the Commission to act on. 2 Housing Commission Minutes March 11, 2009 Mrs. Smith noted that if there was an emergency item it would definitely call for a meeting. She stated that meetings will go forward as scheduled and if there is a need to cancel a meeting Janet Moore and herself will make that decision. Ms. Tuner asked if the Commission could meet via conference call. Mrs. Moore replied that a conference call would be difficult since all meetings require taking minutes. She noted that in the event the Commission would like to meet at a property, she suggested meeting on the same day and time as the Housing Commission meeting since it would have to be posted and identified as a meeting. She reported that the City Attorney will be present at the next meeting to discuss the Brown Act which had some changes that apply to the Commissioners. B. MONTLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for January. C. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for January. Jane Turner asked if the traffic count may be added to the Report. Teresa Vakili replied that the traffic count may be added to the Report. Wait list applicants are contacted by telephone (limit of two calls) and mail with a respond timeframe of ten days. Walk-in traffic is determined on whether qualifications are met according to the program. Donnie Garibaldi stated that the traffic report is currently kept internally and used to assist RPM with advertising and other relative purposes. At this time, Donnie Garibaldi, President of RPM Company, and Marilyn Mack, Chief Officer of Operations, were introduced to the Commission. Verna Smith welcomed both RPM guests and commented that Teresa Vakili does a wonderful job for the Housing Authority. 3 Housing Commission Minutes March 11, 2009 D. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for January. Verna Smith asked about Natalie Russo's request at the last meeting to include a column with respect to the monthly totals for the prior month for comparison. Janet Moore stated that her comment with regard to the monthly totals for the prior month will be included on a going forward basis. She mentioned she would review the Report to compile that information. She apologized that it was not included this month and stated that staff has been working on the budget. E. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the report and addressed projects in process such as California Villas Phase II, recycling enclosures, pool equipment upgrades to comply with the Virginia Graeme Baker Act, and Taos Palms renovation efforts. Pictures of Country Village demolition progress were distributed to the Commission. Martin Alvarez stated that the demolition is 75% complete. All the structures have been removed. The contractor is sorting through all the wood, metal, and beams to reuse as well as the asphalt and concrete, including footings and slabs that will be used as base material for future driveways and roadways. He noted that a complete report of the demolition process to include a slideshow will be presented to the Commission at the next meeting. Verna Smith asked if there was more interest from contractors bidding for projects considering the economy. James Conway replied yes. Natalie Russo inquired on the total number of service requests compared to the previous months. Teresa Vakili responded that there is an average per property and per unit size ranging from 40% to 60% of service calls. Some of the service requests mentioned were AC/heater and/or leaking faucets with same day turnaround. VI. NEW BUSINESS A. AWARD CONTRACT NO. C28410 TO TREE ELEMENTS, INC. OF YORBA LINDA, CALIFORNIA FOR THE CITYWIDE TREE PRUNING PROGRAM (PROJECT NO. 932-09) 4 Housing Commission Minutes March 11, 2009 B. AWARD CONTRACT NO. C28420 TO LEON'S LANDSCAPING & TREE SERVICE, INC. OF THOUSAND PALMS, CALIFORNIA FOR THE CITYWIDE TREE REMOVAL PROGRAM (PROJECT NO. 933-09) C. AWARD CONTRACT NO. C28400 TO ANDY'S LANDSCAPE PLUS, INC. OF BERMUDA DUNES, CALIFORNIA FOR THE CITYWIDE PALM TREE PRUNING PROGRAM (PROJECT NO. 931-09) Spencer Knight reviewed the staff reports, highlighting all three components of the yearly tree maintenance efforts within the City to include Housing Authority properties. In past years, all three maintenance services were included in one contract and proved to be a problem in terms of schedules. Last year the services were split in three separate contracts and found that there are a number of local tree pruning companies that are experts at pruning palm trees and are more economical. He noted that most outside tree pruning companies are not experts with palm trees. In addition, staff got a better unit cost by separating the contract for the palm trees. The tree removal was also separated since it always got done at the end of the contract which created scheduling problems for other projects. From a budgetary cost standpoint, Mr. Knight stated that the trees are not pruned every year. Trees are on a schedule and pruned anywhere from 3 to 5 years. There are certain trees that get pruned every year due to their growth habit such as mesquite trees. He noted that when he is requesting tree pruning services every year it does not necessarily mean every tree is being pruned with the exception of the palm trees. Verna Smith questioned why the palm trees at Desert Willow were not pruned. Mr. Knight stated that Desert Willow was designed to have a naturalistic style. There are a number of facilities that have the naturalistic design such as Entrada Del Paseo, Baja Park, and Desert Willow. Wade Tucker questioned the olive trees and stated there are a number of olive trees at Las Serenas that make a mess every year. Mr. Knight replied that the trees located at the Housing Authority properties are sprayed yearly. However, there is only one licensed spray company in the Coachella Valley that missed their timing this year. Staff is looking into this matter and might have to seek spray companies outside the valley which may increase the unit cost. Janet Moore stated that besides spraying the olive trees at the properties there are other items that are taken into consideration by the Landscape Department. The arborist has a different perspective of pruning trees and its proper timing but 5 Housing Commission Minutes March 11, 2009 has been considerate of the residents and their use of the properties. One example provided was the issue from the palm trees' flowers in the pools and how the timing to prune them may not be necessarily conducive to residential use. Mr. Knight mentioned that each tree is an individual and bloom on their genetic cycle depending on climatic conditions. If the palm trees flower stocks are pruned too soon they push another stock and end up flowering twice a year. He noted that if this becomes an issue they can prune twice a year but will be costly. Mr. Tucker questioned how long the palm trees are kept tied once they are planted on the ground. Mr. Knight replied that the University of California conducted two studies with regard to tying palm frawns and found that it does not affect the facilitation to transplant the trees. The theory behind tying the palm frawns is to avoid losing moisture which can cause the palm tree to go into stress early. In addition, tying the palm trees stops the production of sugar which depletes their food supply to grow and re -root. Mr. Knight explained that there is only one major palm tree supplier for large palm trees in the Valley and they don't deliver them untied. Donna Lewis commented on contracting with the lowest bidder and asked if that was a standard procedure. Mr. Knight stated that it was mandated to award a contract to the lowest bidder unless staff can establish a cause that the contractor can't execute the requirements. Upon question of the contractors' qualifications, Mr. Knight noted that most of the companies listed on the staff reports have done work for the City of Palm Desert and have shown they are qualified to do this type of work. Janet Moore added that there are some situations, not necessarily in this case, where qualifications are essential. She noted that in this case, these companies have to demonstrate they are able to perform this type of work and then staff is obligated to contract with the lowest bidder. Mr. Knight explained the qualification process. Trees service companies are required to have an ISA Certification, Arborist Certification from the International Society of Arboriculture. Furthermore, they are asked to cut a tree at the Civic Center Park as part of the qualification process and trained until acceptable. If the contracted company deviates from the requirement, they are pulled from the job and retrained again until acceptable. Mr. Knight stated that the Housing Authority properties have conventional landscaping since the properties are older. Native plants are pruned the 6 Housing Commission Minutes March 11, 2009 naturalistic style which means the plants are pruned to encourage the normal growth habit as opposed to a particular shape such as a box or ball as seen in some of the Housing Authorities properties. He noted that the plant material in Palm Desert is desert design and are pruned the naturalistic style. He further mentioned that the palm trees are pruned horizontal as opposed to the 180 paint brush style. Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Tucker to forward the recommendation to the Palm Desert Housing Authority to approve an award of Contract No. C28410 to Tree Elements, Inc. for the Citywide Tree Pruning Program 2009 for the Housing Authority in the amount of $34,869.38 plus 10% contingency. Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Tucker to forward the recommendation to the Palm Desert Housing Authority to approve an award of Contract No. C28420 to Leon's Landscaping & Tree Service, Inc. for the Citywide Tree Removal Program 2009 for the Housing Authority in the amount of $2,125.00 plus 10% contingency. Rec: By Mintue Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Tucker to forward the recommendation to the Palm Desert Housing Authority to approve an award of Contract No. C28400 to Andy's Landscape Plus, Inc. for the Citywide Palm Tree Pruning Program 2009 for the Housing Authority in the amount of $7,627.50 plus 10% contingency. D. SAGECREST SENIOR APARTMENTS Janet Moore summarized the memo provided by Veronica Tapia which proposes the 2008-2009 budget for Sagecrest Senior Apartments. As previously mentioned at the last meeting, Janet Moore stated that the Agency acquired the newly constructed property known as Sagecrest Senior Apartments adjacent to Sagecrest and Laguna Palms. The goal, long term, is to eventually combine both Sagecrest and Sagecrest Senior properties and determine a budget that will be 7 Housing Commission Minutes March 11, 2009 suitable for multi -family and senior units. A family home located in front of the Sagecrest Senior site was also acquired by the Redevelopment Agency. Once the existing owner vacates the home, staff will have access to the property. The Agency will now own the properties contiguous from the corner of San Pascual to Laguna Palms. Mrs. Moore stated that based on the discussions during the Housing Authority tour in November with regard to the use of the existing Sagecrest property, it was determined to possibly deconstruct. Based on the analysis from local architects, the drainage and ADA accessible rehabilitation of the site is not the best option. In the event Sagecrest is deconstructed, both properties will be combined and made usable for Housing. Mrs. Moore stated that the budget for Sagecrest Senior is a suggestion based on past history of senior properties of equal size. A significant portion of the existing 14 unit (Sagecrest) budget has not been used and therefore staff is asking permission to subsume Sagecrest Senior's budget into the current existing budget. Staff is not asking for an appropriation at this time; this information is being provided to the Commission to make them aware of the changes and the allocated expenses to the senior site. She noted that the units are not subject to capital improvements but livability adjustments even though they are brand new. One issue mentioned was the water heater location situated 6 ft from the ground on top of a pantry. Staff is looking into bringing the water heaters to ground level to avoid future leaks. This alteration is expected to be completed before the units are occupied. Staff is working with RPM to install doors to enclose the water heaters. Leo Sullivan asked about the amount allocated for Total Rental Income, given that the property is vacant. Mrs. Moore anticipates occupancy by June 2009 and therefore an amount was budgeted for the total rental income. Upon question, Mrs. Moore stated that Sagecrest Senior Apartments consist of fourteen (14) one -bedroom apartments with an age limit of 62. All of the other senior Housing Authority properties are 55 and older. She noted that staff might request for special consideration to make a recommendation to alter the age limit as the rest of the senior properties. She explained that when the property was built by a private developer it was part of his requirement with the Planning Department that it would be a restrictive property of 62 and older. She mentioned that at one time, a Housing Authority property had an age limit of 62 and was lowered to 55. 8 Housing Commission Minutes March 11, 2009 Richard Kelly, Councilmember Liaison, stated that the City Council is the responsible party for setting up the age restrictions and should be consistent with all senior properties. Mrs. Moore informed the Commission that the wait list at the senior properties is down and by raising the age limit to 62 would make it difficult to keep the units occupied. Mr. Sullivan questioned how the figures for the Total Rental Income were determined and commented that knowing what we have done in the past he felt there should be zero income before the end of the fiscal year. Mrs. Moore replied that those figures are calculated at an average rent of $450 a month for a month and a half of occupancy. She noted that because the proposed budget is being subsumed within the current Sagecrest budget a change to the revenue will not affect the budget. Mr. Kelly commented that staff has to provide some type of estimate and if the Commission does not agree with the estimate then they should make a recommendation to change it. Mr. Sullivan commented that the way the Commission has looked at things and the way things have been accomplished over the past several years, he felt it should be zero at this point and wait until the next fiscal year. Natalie Russo asked if there was a wait list in place for Sagecrest Senior Apartments. She also inquired if the units will be occupied after the water heaters have been relocated. Ms. Vakili stated that there is a waiting list in place for this property. Once the units are move -in ready, they will be shown to applicants. Mrs. Moore mentioned that the alterations are minor and one unit will be modified first to show wait list applicants. Staff will also take this opportunity to install recycling bins. James Conway stated that the installation of recycling bins has begun. Natalie Russo commented that she would prefer to see an amount instead of zero in hopes the units will be occupied by June. Mrs. Moore stated that if the Commission agrees to zero for Sagecrest Senior if rent is collected the revenue will show an increase. 9 Housing Commission Minutes March 11, 2009 Rec: By Minute Motion: Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Tucker to accept the proposed 2008-2009 operations budget for Sagecrest senior apartments with a change to the Total Rental Income of zero. E. 2009-2010 BUDGET Janet Moore referenced the memo provided by Veronica Tapia which summarized the proposed budget that will be included in the City's Comprehensive Financial Plan. The Director of Finance was made aware that if changes are suggested by the Commission, a final approval might be in April to allow sufficient review from the Commission. In the past, the Finance Director accepted the budget with changes and/or suggestions from the Commission. Mrs. Moore referenced page 3 and summarized the Totals for All Properties Budget Comparisons. She noted that the Net Profit and Loss, Capital Expenses of and Reserve Expense figures resulted in a negative after the Net Operating Income. However, staff reviewed the capital and reserves expenses and found those items to be typical improvements/upgrades. In addition, Teresa Vakili was presented with a Reserve Expense of approximately 1.5 million dollars of which she reduced to 1.1 million. Both staff and RPM comprehensively reviewed each line item and made the best efforts to be consistent with what is needed and looked at items that may possibly be postponed. An example provided was the pool furniture at One Quail Place which needs to be replaced but opted to dipping and re -strapping at this time. The Reserve Expense items include the HVAC systems, roof repairs and appliances with the exception of cabinets in kitchens and bathrooms. There are monies set aside for unexpected incidents such as fires. She also noted that the Housing Authority has cut their budget for the properties by $230,000 and has an overall budget of about 5 million. She further noted that RPM's contract will not have an increase this year and that RPM has been very conservative with the budgets, given the constraints of the City and Agency. Upon question on the budget for Country Village, Mrs. Moore stated that the money for the deconstruction project is in the budget. The proposed budget for the new project is in the Redevelopment Agency budget. There is a line item in the Agency's budget for 20 million dollars that is covered by bond funds for that purpose; it is being proposed for the 2009-2010 budget year. Mrs. Moore referenced the various sources of revenue to include laundry revenue and also noted the expenses relative to last year. 10 Housing Commission Minutes March 11, 2009 Rec: By Minute Motion: Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Russo to forward the recommendation to the Finance Director to include the 2009-2010 Palm Desert Authority Operating, Capital, and Replacement Budgets in the City of Palm Desert's Comprehensive Plan for 2009-2010 to be presented to the Housing Authority Board for approval at a future meeting. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER Newsletters were provided to the Commission for March. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway summarized the report. Verna Smith asked if the work is contracted out or handled by staff. Mr. Conway stated that the consultant coordinates the inspections, work write- ups and contracts and then provides them to staff for review. The application process is reviewed by the Housing Department. As previously requested by Leo Sullivan, Mr. Conway provided two HIP signs that show the comparison of a standard size to a larger size. He mentioned that he had met with the Planning Department to verify the ordinance established with regard to posting signs in residential areas. Mr. Richard Kelly, Councilmember Liaison, commented that if signage is needed we should be consistent with everyone else, i.e. real estate signs etc., to comply with the ordinance in place as well as avoid problems with homeowners. Commission agreed signage should comply with the ordinance established by the Planning Department. 11 Housing Commission Minutes March 11, 2009 Natalie Russo inquired on the Set To Save Energy Program and asked if those upgrades can be done at the same time as a HIP project. James Conway stated that the Set to Save program is a separate program and is handled by the City's Office of Energy Management. There is a component in the HIP program that allows homeowners to do energy upgrades such as retro windows, efficient water heaters, etc. IX. NEXT MEETING DATE — April 8, 2009 Janet Moore stated that the City Council meetings for May have been changed at the request of the City Council to the 1st and 3rd Thursdays as opposed to the 2nd and 4th. Mrs. Moore suggested that the Housing Commission meeting remain on its regular scheduled meeting date of May 13th. Commission agreed to keep the May 13th meeting as scheduled. ADJOURNMENT With members of the Housing Commission concurrence Verna Smith, Housing Commission Chair, adjourned the meeting at 4:37 p.m. t'L+LL_.] Patty Leon, Recording Secretary 12